Foot Locker (FL) 23 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to Foot Locker's Second Quarter 2023 Financial Results Conference Call. [Operator Instructions].

This conference call may contain forward-looking statements that reflect management's current views of future events and financial performance. Management undertakes no obligation to update these forward-looking statements, which are based on many assumptions and factors, including the effects of global economic and market conditions, currency fluctuations, customer preferences and other risks and uncertainties described more fully in the Company's press releases and reports filed with the SEC, including the most recently filed Form 10-K or Form 10-Q.

Any changes in such assumptions or factors could produce significantly different results, and actual results may differ materially from those contained in the forward-looking statements. this is that recorded. note also conference being call Please

to the Mr. I turn over Robert will now begin. call Higginbotham. may Higginbotham, you

referenced you, that morning's will posted Relations to the earnings Thank to slide non-GAAP during A everyone, presentation Inc.'s included GAAP will Note, Welcome, quarter in website we is second a this reconciliation Foot of Investor call. release. certain with on reference Locker call be our results information non-GAAP earnings measures. call. Today's operator. have

Today, our and Baughn, our in geographies. banners and Mike remarks President Mary quarterly Vice provide Chief will on with Then Executive Commercial Vice and detail then review Chief our we'll Executive Executive more our our financial prepared color begin across position guidance. and updated Dillon, operating XXXX give Chief on detail President more and Officer; President Frank results and results Financial will Officer, Officer, Bracken,

your will remarks, prepared our Following to Mary, and Mike respond questions. Frank

With it that, over I'll to Mary. now turn

you, Thank and for joining us. Thank morning, you good everyone. Rob,

and changes of number our have allocation, to including morning, additions this year, results, we'd our for second topics our quarter to Lace team, We Up discuss our updated structure capital execution like organizational outlook of the a ongoing the in plan.

start for up create actions taking Locker shareholders. will we're profitable our to Lace businesses we the believe set value Up and by Foot long-term on like touching briefly our growth that drive I'd to plan to for continue reinforce sustainable forward, and our

with capabilities modern and and investing the have culture. we're our that simplifying required omnichannel sneakers business be leverage. And sneaker in executing assets we confident to I'm and strong the focusing retailers synonymous strategies, and right

awareness culture heritage strong in XX-year and over authentic with social brand XX% that's sneaker rooted an iconic engagement. media brand have with an and basketball We

highly for are year, wholesale update the dynamic in been And to This operate the relationships our that With than a plan further through knowledge leading expected a we reset have said, sales strong with a half. be in continuing Lace And developed softer Up while partner first us we the guidance for brand has we partner that led year. top to XXXX as would industry. the retail environment. brands have our

In our addition, as you to the return release strategies saw provide made with our morning, additional Board the to in has execute and flexibility dividend we press this growth. pause as in us our decision invest to our to business

coming our including and full on when the to Up back-to-school. back had we plan a strong This became the through and targets, yet Lace second outlined quarter, holiday not evident seen were much consumer. lower March, a income macro Looking off start we the our more environment our weaker to longer-term of weight

in quarter to we persisted second the our and see late with through store customers began conversion as The challenges, discretionary remained dollars. cautious traffic QX their

we heavily better than more wallet to for and our customers' result, a a share As promoted our compete of levels. manage inventory initially planned

for have our sales $X high promotional high lowered of comps margin we've August the results in single-digit to our and helping the of of range expense management, guidance, result, of continued The a non-GAAP same X.X% at end reflected near trends These down second to $X.XX. we year. are lower disciplined as sales financial end our a $X.XX, with our with EPS which offset guidance quarter and deliver down dynamics us and the outlook into

This better slightly XXXX. and holiday updated strategies, to this to and us result of continued the transition season year the our our sets we positioned inventory progress into that as up end promotional down our reduce position well the continue be year to for to outlook assumes a to year-over-year. We've into flat

to our make continue In cost year. discipline plan addition, this savings we remain progress committed on and expense to

Our challenging value will team longer-term invest navigate environment allow taking to us behind that and steps continue creation. the agile, to of and in remains macro shareholder support we the our we're believe strategic initiatives

part leadership and A to team fast-changing hires, having best-in-class senior bring of they functional is thinking that collaboration, place retail bring brings of our expertise, combination series experience knowledge a path Locker right place fully a in Foot our enterprise to excited world retail to of expectations. in have in new a my forward elevated team industry and I'm life. customer right with strategies critical requirements and combination leadership after the of the and of recent now

we the including a of Officer beginning number and in TCGPlayer.com Kristin the Technology Chief Chief Officer also quarter, a and recently who of just Ulta Target, on since T.J. spent new in talented welcomed was at at know, time And most has our and Officer. Supply Bauer, individuals you Maxx, [ph]March. Chief Beauty this year, we brought positions, Chain As critical Customer as

recently most General us joined as and Starbucks, our at EVP new And Counsel. Jennifer who also was Kraft,

also EVP over Financial Chief Officer, Treasurer him Executive finance most at serving Baughn, years retail who recently with We brings Vice new welcomed Mike experience, as of President Kohl's. our of and and XX Finance

our excellent the on team forecast place, we've few ability and to merchandising, marketing more immediately made achieve senior teams recently leadership important our moments. our to addition in and to inventory will us share Frank helping a enhance an changes be will Lace improve plan our our partner Up in to been also finance team skills ambitions. and and a Mike's great structural With these capabilities. and changes execute Mike designed and in management

making facing Up tougher on expected. I'd than the Lace year as a we're like our within we're provide now plan, even details to more progress

four there deepen sneaker the expand our best-in-class to power strategic with know, omni. Up are culture, plan, our up portfolio, and you pillars Lace As customers relationships

their by for franchises. with, growth merchandising, We're brands helping omni-experience. better sharpening on customers' position We're expectations. offense our deeply ever-evolving better collaborating we certain and to focused behind a and meet to work our competitive across our to partner drive business We're marketing technologies capabilities toolkit the the and being partners for investing our vendor also incremental strong

ideas partnering our enhancing much growth businesses. insights We're will upstream customer-facing around now to consumer our our us out data, capabilities co-creating partners. been share demand that marketing and drive ideas creation and segment build also with joint further and specific customer to multiyear We've opportunities allowing plans

I position into noted up compete decision earlier, and environment. level we the provide As in current right in paused to Up with greater the business our flexibility leasing modern dividend is capabilities to to know our best the the that marketplace. us We Lace

prioritize as also initiatives that we'll critical omnichannel in and foundational greatest return investments immediate consumer-driven forward, make Looking retailer. to areas drive will longer-term goals a the our

of even energized is green our in proof strategy the forward early confident we're we're in moving days Lace direction. take make Up, us we're starts to shoots While the team right points that more These our the hold. by as seeing

Let me walk you through our four pillars. each of progress strategic our on

is providing culture sneaker distinction. more occasions, by choice first expand imperative sneaker driving serving and Our more greater to

our the we're first continues also sales stronger While to Air thrilled Fleece early Nike seeing results launch in to This Force overall, our quarter. Jordan Tech encouraged with reset of new business. Jordan X, Nike Basketball includes business by AJX, in basketball and impact Nike's and Retro. sneaker We're the program, Nike signature female the the help and we're Dunk

kids develop our including culture. collaborative and plans investing to we're key Meanwhile, continuing with sneaker Nike partners, very basketball, in areas,

of York community in fact, Nike and In versus partnered bringing New York in the with New Grassroots our best Jordan the just New to retail basketball City York activation. we exclusive

needs, with evolving choices customers to more including partnership in their progress our assortments occasion. our Beyond to Nike, we're line diversifying with on our making provide more sneaker

fourth a brand our largest well key we're our the over and second partnership into now quarter. grew which As example, New Balance, XXX% in leaning with

We in running. of brands newer also On remain trajectories and the excited HOKA about performance like

is ahead these our we core also shoppers, extend our expand towards and now base, female growth brands. On our to their by XXX customer. this is While XXX year-end. and reach to they're XXX HOKA a with helping doors and continue including currently plans doors XXX with And brands we're way to headed in us more affluent year. customer its in And push on helping these

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to more And now over like performance it I'd our provide to to Banner. Frank hand detail by on

you, Thank and morning, everyone. good Mary,

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content channels, engagement relevance Wright to Foot with high all our Matthew Levi's and his To across Director. Matthew our will our and sneaker new Global Locker and storytelling Creative Outfitters leverage brands culture. Urban as President brand us experience their Nike, consumer Vice in maintain help elevate deep like levels of brands ensure and joins

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to and in guidance the over to Mike call I'll the now hand more go financials over detail.

I've the learn to good opportunities for that in and Foot of morning, know we Frank, at am operating in everyone. to and and And been confident you, getting we the there. in Locker ahead the over time, get have that right are months, just strategy the business Thank I've us two to I team. for been and growth diving

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expenses how original the business been capital to financial investments within can the optimize expenditure on markdowns, With continue for investments business its expectations, needs long is and capability while missing knowing First our the best term. my technology make work us the to to has dollars, and prioritization. XXXX position

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We our on announced, as October holders record which will of on XX pause. will after to XX, we October dividend pay

reiterate our and we is aligned the Locker it to the we Before over by questions, we're and motivated to to I Foot seeing. dedicated implementing early Lace turn team want Up, that management wins at are

on quarter. well our forward we our we financial Acknowledging progress as that performing We is our fourth capital revisit when updating to to target results. allocation plans you initial timing beyond report expectations, our as intend goals our next look longer-term XXXX below against XXXX quarter

questions. the With for that, operator, call please open

[Operator comes Drbul with from ahead. Please go Today's first Instructions]. question Guggenheim. Bob

guess the positive Nike you I level the return give be penetration, us I what have the business? morning. sort could think update just any on of Good is to around guess the just relationship. of Hi. Nike within I is around comps then you exclusive helpful business from like update that standpoint? Can an when question seeing you're other the And would exclusives just

quality Mary. need clear. please to is audio actually, thank Thank will we if let you Q&A for Hopefully, there's of know. there. you Bob, anything This by the start the the the you, apologize us of me And just call. reiterating, Bob. let for starting And clarify, be

with Let me very partner, strong continue a important just obviously, relationship build by Nike we and start saying, them. is a to

heard the to the basketball, shoe together of culture culture. be celebrating pleased specific unique We mentioned both the York in one York. really of here basketball as grassroots women. that marketplace, really prepared event X the in kids just you launching of versus And New focus a New the did recently are in remarks, New on to Sabrina we and retailers for areas fact, And sneaker York, in the Frank and we're neat us

great. So that's all

yet for course, And is the the and reset that quarters so of we move we'd marketplace growth starting be we in expect year and would forward though, into lots knew year. future be working as through coming. back of this year This to we will a there's next reset strength that of we as see couple the a

and feel So And we're you on together exclusives? good about topics working do talk to really those it. about want closely

just really Sure. say Absolutely. continues Yes. progress. would the team I to good make

holiday, its iteration, NBA This So launching as success season. new with our the we'll will X which third the be great Mellow had Puma into that Adidas. anniversaries here examples, we've Edwards be with launching also for partners the at

as on Marseille Continental across in France sell-throughs of a incredible then we tuned as release had generated a buzz. of Europe, better the the tremendous in well really stores of Nike, recently at just our celebrated and lot which And topic part great air

make progress. CSG heard on then Locker, and you then continues that, of remarks, to And vertical progress launch very So good next our the the Cozy in Active. my in brands team to prepared

So good the progress make to team very on continues exclusivity.

follow-up. a just And Great.

flexibility, sort On the the the wondering thoughts give of stake the to have? cut you could GOAT around updated your dividend decision that us ownership if and financial just you

as XX%, our then about the you -- know, that. Maybe with Lace we'll pay start if we part that's back But the ratio. is we dividend, XX% come can of to a payout to dividend and okay, Up as

new substantial long-term payout -- to that? continue in we're made more to give to on us add the and a decision along about pause the invest guidance, Board And a at flexibility with with Frank, thing our lasaplan. like pause ratio. EPS GOAT, you So our Would to

Yes, sure.

within So share be I a GOAT large can we Group. is to continue what shareholder

update We you for on we as for marketplace. And see opportunities continue brands. opportunities partner guys the two future quarter to sharing, future certainly, and continue each to looking insights into integration results data we'll the and

comes with Evercore today from next ISI. go our Warren And Please question Cheng ahead.

taken speaker morning. some significant strategy specially given a been there Hey, Champs way pretty impact March for wanted you've any you actions a outlined what's I to is Are us reposition. that and ask for from around the Nike also, And of tweaks your launches good quantify the away in to impact to pulling the about from Champs reposition? making the banner?

Thanks Champs. question I'll Yes, the on for start.

opportunity which recall, seeker the adjacencies we also as over you and America here we is very the then we Champs our what market quality is then So forward in map talked very call what alone. expression positioned billion call about fashion sneaker strategy. North our and a the $XX in there's growth And active new portfolio clearly athlete, good And

than differentiated what that's which led we in And Locker. pivoted essentials. making been the and place apparel; the sport consumer that's from also where it the performance; and then has pillars: The a three very good very sneaker we is brand, so Foot to is on repositioned team and meaningfully different style, which past has progress call Champs

just very done we stores important think it's how support, very and the we're good here that happy And are here. for getting XX And see quarter we also turning planned another in and vendor out. which starting got are performance, 'XX. improved is our as with fact, of are we about some resetting We've core to one got

our improved lap the of of the we'll some terms a that of at for and we'll difficult we the reset So we talk XXXX. date the about end start we've to Nike decisions expectations in taken, obviously, of see And performance then later through expect some comps year. the

that is Is banner about a new Or just once existing Locker customers base? is the follow-up Inc. fully repositioned? more your previously Foot Champs serving to idea segmenting there it served banner? by be will And win on that weren't customer the who

Yes.

both. I think combination a it's of

customer think of in ex Armour, Under see Nike an Locker think Think our that of acquisition. Foot the at share brands, share in brands I opportunity are When an our for XX% have market. rest new about arguably Brooks, about the been those have banner. performance I of Foot underrepresented we Locker we X% talk ASICs, some that, only the we

is Champs vendor again, sports really And great apparel. keen so with real to and assortment opportunity on of that style the led through performance extend focus a lens a

incremental. is So truly it I think

some along consumers of So to but consumers, new be also migration acquisition it'll the the way.

comes Please ahead. today from McShane Kate And go our Sachs. next with question Goldman

environment Good the you And How move of expecting marketplace This of filling half magnitude into for year, you is are morning. in the as Brooke for Kate. look for today? the inventory -- the you feeling and back back-to-school as the into you across what Roach markdowns you about the through are and footwear competitive channel think holiday? as

One household expect through of your for And will discerning, question. I is you go promotional. [indiscernible] that being customer that pressure that, environment an budget under that say sensitive what our a things. Thank year. that is in terms of somewhat price would we're is in seeing as the and we continue we being couple would

a competing elevated -- for wallet. of It's share inventory inventory. somewhat We're higher all that

promotional would the will we year. the level rest So expect and that through of continue

go ahead. next Alex from our Straton comes today And Please Stanley. Morgan question with

you on the to clarify Nike relationship that something said. Great. wanted I

mix reset. you second I So that last quarter, the the correctly, of hadn't think But if think recall was in I said changed. said four this Nike I vendor the you quarters

the profitability that in did then that you implications how just what for last sit just can follow-up versus this and are a quarter the So there? year? And me? is or first Maybe penetration quarter where Nike on second clarify impacts

if recent going you we can I'll site that We're as the through Yes. I'm the What are we sure discussed. year certainly is tell exact not number. evolving.

which mix from would and be up a we year our we ended of other XX% is XX%, at ago. this Our that expect business XX% longer-term being brands, quarter

So that's five points. plus

So goal. we're making that progress against

Got it.

the in how Okay. just the and Maybe comp that on one follow-up kind quarter. of trended

digits, second down acceleration. guide an contemplated it quarter seems double was like and low May think I the

just you me that what thought fruition? And would remind of? you happen, the to was maybe then kind June didn't what of can uptick also why come result So a

is Mike. This Yes.

as So in with exited your think with quarter, bit I to saw digit the double-digit a from low low and again, June. of double a operating point, little we through a quarter May upside at perspective the

progression tied we to for that a throughout promotional saw month more of lot from of around our in holiday. of the ramp-up expected and really think had a expected guidance, the I the volatility we And back-to-school momentum in quarter. July standpoint original

of promotional our In that into single August. the think is back trending guidance been we've August, relatively I digits it's seen that have we date. continued to contemplated we're environment. our half of high things as And month comps acknowledging year, here down what for a the similar are the

contemplated really that that's of the the And we in provided. guidance midpoint

outlook year-to-date is our trend. So again, our with

year, the of And still our is through on our of the talk loans. the that we recognizing the under risk, are further that embeds macro As scenario half potential consumer pressure. there back changes downside horizon resumption student spending really with

momentum Our initiatives. are the seeing a wins from strategic upside scenario building of standpoint guidance we and some reflects our early within

go Baird. our today from with And next Jonathan Komp question ahead. Please comes

trending from follow does And July-August digits? If last improvement Are up on guidance levels? or the clear. we're you wanted single the comments so I still there, just require down -- up Mike, high I the any follow low to could just double digits

sure about so August correctly, but make you to trend. Jonathan, you up, asking the breaking you I were heard were

better is really of digits quarter we so where high bit So digits, down the a year-to-date July. in then high which month half the And back than guidance. our single is our the line again within -- August comp of that trend single little midpoint trending down our with exited performance, is high

Okay. That's expect? profit just dollars. being terms earnings if the some the there in quarter doesn't traditionally, fourth can like the look pattern of it okay. third should relatively to looks when typically is higher factors parse further Could you fourth maybe unique we of little that out a you much similar, hear the fourth quarter are helpful. earnings around hopefully, and And And normal me about comments like we then think quarter the

Yes.

the about as than we in split could compares. QX, the XXrd we've absent relatively And week, XQ, range a guidance we're that of acknowledging what is with I think EPS, tougher little be think given XQ think a I we're even highlighting quantified the our potential through $X.XX. terms again, of which QX as the split,

some having margin QX pressure with additional then year-over-year. and -- again But

by of weighted QX. But [indiscernible]. So a now, little of more even markdowns right towards relatively heavily as they're bit split again, those

question Please of Bank next with today America. our ahead. from And Hutchinson Lorraine comes go

drops? is customer reacting Good that customer those driving Or gets this launches limited Thanks. still a demand? the Are really product and on core buying outsized it your focus promotion morning. point? How to at is

We're very type launch sell-through seeing on Yes. good still products.

So whether retro that's launch, release or pure or innovation. date

very quarter think very the responding I'd you was favorably, is most the consumer that remind in launch good. be the continue challenging fiscal our to sell-throughs XQ I just and year.

standpoint. moderate QX. quarter actually And comp from fourth relative launch QX, be comparison be and in a So it'll the will and best between QX somewhere

So factors guidance. into revised that our two

business, and the that non-launch, it's are is sell-throughs, base seeing promotional sort pressure impacting we been On of very competitive.

brand the from promotions base. heightened into marketplace pressure seen both that across store and also put Europe, competitors. key again We've went which sell-through U.S. comps on and as well ETC as and markets also conversions our And throughout retail

Please next ahead. go our from Stichter Janine BTIG. And with question comes

about ask morning, Good and Hi. I to welcome, Mike. wanted inventory. the

think it still into about clean where are which you're first should how now based down And promotions sales linger year-end? of we would to completely slightly, be your potential for think planning Would to half higher next year? the on be I than by are the trending. be expectation where we

assessment, given at initial then for your on wanted the March? Day versus expense And what any I based is was room also cuts the additional Investor to about ask in there base just

made pleased an to the standpoint, with we progress again, we're inventory be XX%. the from here that So in quarter up

out will slightly down. calling the to that we are year end We flat

that necessary year. half be We needed the guidance, the achieve that into levels to have included, within we of our promotional believe back the will going

cost a perspective, below from operating think our in 'XX. expectations we're I acknowledging

on very we will front. to that the our obviously that could spending. commend continue in -- we and discretionary team we'll do manner. disciplined that culture expense agile think with for I we've been imagine, operate I being a can management, you really in is have very As tight

from our again, cost SG&A the tied $XX margin within to overall and then cost quarter perspective, And across initiatives. quantified we savings an of million

the for Lace plan as $XXX track million the on Up we're to again, well. tied So

order saw when call, April just I'll the going our in quarter book base slowdown made QX Yes. adjustments and And first holiday add, our in to begin we our some we immediately book. order business, back to some of the

back And to well work book partners So half both businesses vendor expectations, down that the our 'XX. receipt with static. as back as continue of to stay slow continue miss we and did order to flow internal make the to as not the our our adjustments, for

our Group. today from And with question Feldman Joe comes next Telsey Advisory

and I wanted a what a But if you from from a little August-to-date the out could has start to to you're get back-to-school share sounds on more why improved a quick there? color decent July. thought of we're hearing on -- retailers seeing other like back-to-school trend lot It off there. is

wondering on And so you that? guys and customer I thought what more just was seeing are with you're some what your from hearing

hoped initially the in. July looking at have levels. compete would bit in inventory say would manage weaker heavily I participate promoted and date kinds of more consumers say of of a trend for we categories products back-to-school. our terms than our that I little Yes. wallet August back-to-school many a We to is to customers' tale of different would in share and we're that

more spend, customer skews are little on a pressure that discretionary add would being their a a are so we the more pressure And terms little school for bit having like a are our equation little us. and sensitive sneakers supplies for it's that sports softer products bit So want that price part of little right? and up a things as on people know feel on more we of towards back-to-school, So like set in well equipment, selection. choiceful we're we customers but our

comes question next with Yih Barclays. Adrienne our And from today

to go to was merchandise there of margin. on was then believe and that. shrink on to points some and going elevated the kind I I'm it XXX quarterly back higher the offset promos comments basis

any So within that write-down product? to happen or a you on take XXX basis reserve do points, aging a

into a in should Do year accrual the of Anything regard quarters? the do you about July? you just then of that it couple it once that? do to of kind Or you shrink, think going do seasonal that we nature? a do once year in how tactically, do with And of January? How next

question. So the thanks for

quarter was we transition -- a did QX to what holiday from within into But ultimately product always think in operate doing standpoint, elevated We best QX in results. then look that margin basis, clean merch vast our a inventory that's from level then through in a what of the and margin aged is and XXXX. have and into again, at I ensuring on majority of the incorporated we're promotion. we best the a pressure the regular and

our within incorporated results. it's So

Great. the if then shrink, will? you And

it's largest and what's our standpoint, And promotions. terms of of embedded performance from within been magnitude has a within from year-to-date the margin guidance. an in our then order strength driver The

margin. been The seen we've which the biggest embedded driver our second occupancy deleverage within has costs, within are

And back year-to-date. a third is then expected shrink half incorporated shrink is similar pressure we've what our had guidance into levels the to

the in guidance increase So promotional activity. really the is around the

very recapture. you back one my the If back half? to better? better in And then get plan go into that? And is freight that Can the last half, is get you comment are you on seeing that

apologize, I recapture, you could broke you... I up. heard

any on or the of mark from shipping so recapture chain, kind portion of supply from of last year? and/or benefit like freight, that the the Freight container

the it is promotional we're be. incorporating I to mean really our to in half think easiest of back where is markdowns about inventory biggest the to the way build to I needs guidance, again, think that the it change,

from comes today question Paul Lejuez last our And Citi. with

promotional Did just key your so when you'd ability detail need allowances vendor on Can expect? the assortment more to second, close within non-launch you give than partners? what stores. curious from happens about that to you talk get And more can you your where maybe And of be then product? you

over think you transfer the XXX curious closed you what sales I see And of or stores kind nearby online. far. thus

Yes.

So I'll -- back actually, the question start at to the first end.

related store wind our the of down. in Sidestep really closures majority to the XQ So

concentrated was And marketplace. so that highly into German the

And from intentional inventory the have we so we and about benefited store which some were a that. moved conversions, of And Locker very also most Foot the to would better then Locker Foot actually number over. of rebranded

in specifically Sidestep mitigated to of sales So that's how XQ. the down hit sort wind we the

into quarter where first as to the into and seeing As we softness, trend been of sort think of continued and quarter in has the to running to going certainly, we're category as some footwear the a about of spot and the through out And something of it the softest work lifestyle markdowns category. inventory second relates management the that's that's fall season. that we're the continue sort

markdown say I'd part liquidating been of a some towards so And has allowance the of those franchises. geared large

partners work to brand on our with allowance, continue in reflowing on the vendor our RTVs We half. book and also back order

the So I as for in year and inventory, want sort North that particularly America reset partnership think to possible there's of recognition we been cleanly good the end as XXXX. all and

Okay.

with we So year been I I that want this everybody while to wrap aligned our expected, excited transformation that's and and than Up our plan. for let is about really me the our today. place joining we're in Lace business strategies. team just I the seeing to traction up. And the us with want energized reemphasize am And importantly, reset committed entire taking thank this has to tougher

on XX,XXX through ready I busy us DCs to close strategy stores the they're the and stripers also continue over to the back-to-school that want working to help plan only our thanking the our by can. just employees in get hard season, and be the website our holiday and like implement

goodbye. Thank on to quarter. we updating you So and look progress forward you, our next

you. concludes for We you participating. thank conference. today's This Thank

now have may a disconnect, wonderful and You day.